Reminder to Insurers

Published: July 17, 1999

To the Editor:

Re ''Insurance Ruling Could Raise Costs'' (front page, July 13):

Since their inception, health maintenance organizations in New York State have been required to use community rates, meaning the same price for all members, regardless of age, sex, health or claims experience.

Our ruling was a reminder to insurers that unless they have approval for other rates, they must use the community rates on file.

Not one H.M.O. has sought approval for an alternative rating structure. Instead, certain ones filed one set of rates with the state's Department of Insurance and charged large groups of point-of-service subscribers another rate.

H.M.O.'s have been using inadequate rates to gain large-group market share on the backs of small-group and individual subscribers, which can destabilize the market. Compliance with existing law is what is needed.